The Failure of the New Economics

The Failure of the New Economics (1959) is Henry Hazlitt's systematic critique of John Maynard Keynes' influential work The General Theory of Employment, Interest and Money. The book undertakes a chapter-by-chapter analysis of Keynes' economic theories and arguments. The text represents the first comprehensive examination of The General Theory, addressing specific claims and assumptions rather than providing general criticisms. Hazlitt's analysis focuses on the technical foundations of Keynesian economics while maintaining accessibility for non-specialist readers. The book achieved recognition among economists and intellectuals, earning a place in The New York Times' list of outstanding books in 1959. It received praise from Austrian School economists while generating debate in mainstream economic circles. The work stands as a fundamental challenge to Keynesian economics, examining the relationship between government intervention, employment, and monetary policy. Its systematic approach to economic theory analysis established a framework for future critiques of Keynesian principles.

Readers often describe this as a detailed, page-by-page critique of Keynes' General Theory. Many note it requires some economics background to fully grasp. Readers appreciate: - Clear explanations of complex economic concepts - Systematic breakdown of Keynes' arguments - Extensive citations and references - Strong focus on logical reasoning Common criticisms: - Dense, academic writing style - Assumes prior knowledge of economics - Some find the tone overly harsh toward Keynes - Can be repetitive in parts Ratings: Goodreads: 4.3/5 (156 ratings) Amazon: 4.6/5 (31 ratings) Sample review quotes: "Does an excellent job exposing contradictions in Keynesian theory" - Goodreads reviewer "Very technical and dry but thorough in its analysis" - Amazon reviewer "The mathematical critiques are particularly strong" - Mises.org review "Sometimes gets bogged down in minutiae" - Goodreads reviewer

Human Action by Ludwig von Mises A comprehensive treatise on economic theory that systematically refutes interventionist policies and presents a detailed case for free market economics through praxeological analysis.

The Road to Serfdom by F.A. Hayek A methodical examination of how central economic planning leads to totalitarianism, providing historical evidence and economic reasoning against government intervention.

Economics in One Lesson by Henry Hazlitt A point-by-point examination of common economic fallacies that builds on the same analytical framework Hazlitt used in his critique of Keynes.

The Theory of Money and Credit by Ludwig von Mises A technical analysis of monetary theory that challenges mainstream views on money creation and credit expansion similar to Hazlitt's critique of Keynesian monetary theory.

Man, Economy, and State by Murray Rothbard A systematic treatise that builds on Austrian economic principles to present a comprehensive critique of interventionist economic policies and their theoretical foundations.

🔸 The book was published in 1959, exactly 23 years after Keynes' "The General Theory of Employment, Interest, and Money" - the work it critiques. 🔸 Henry Hazlitt wrote this detailed analysis without formal university training in economics; he was largely self-taught and worked primarily as a journalist for publications like The Wall Street Journal and The New York Times. 🔸 Each chapter of Hazlitt's book corresponds directly to the chapters in Keynes' original work, making it a unique parallel commentary that can be read alongside The General Theory. 🔸 The book gained particular attention during the stagflation crisis of the 1970s, as many economists used its arguments to explain why Keynesian policies weren't working as expected. 🔸 Ludwig von Mises, a leading figure of the Austrian School of Economics, praised this book as the "first parallel commentary on The General Theory" and considered it essential reading for understanding the flaws in Keynesian theory.